Dire German debt auction rocks global markets

A dire German bond auction rocked markets overnight, with Japan's Nikkei index hitting its lowest level since April 2009 as fears deepened over the eurozone crisis.

Japan’s leading index fell 1.8% to 8,165 points, while the MSCI Asia Pacific dropped 0.5% to a seven-week low. In the US, the Dow Jones closed 236 points or 2.05% lower at 11,257, while the S&P 500 fell 2.21% or 26 points, to close at 1,161. US banks led the S&P down after the Federal Reserve revealed its plans to stress test six banks against a global market shock such as contagion from the eurozone crisis. Credit default swaps on Bank of America debt climbed as fears intensified over the stability of US banks in the face of the threat from Europe. Markets are closed today for Tha...